5 Real Estate Terms You Need to Know

Dated: May 31 2021

Views: 36

Real estate can be confusing at first, largely due to the many different terms and phrases you have to know and understand. To make it a little easier to grasp, here’s a simple explanation of five common real estate terms.

Pre-Approval Letter

A pre-approval letter is a statement from the bank that basically estimates how much money they’re willing to loan to a particular buyer. This is extremely helpful to the buyer because it gives them a much clearer idea of what kind of home they can realistically afford.


An appraisal attempts to determine an accurate market value for a property by examining both the actual property and comparable homes that have recently been sold in the area. This process is done by an licensed appraiser and is done for the sake of the bank, who wants to ensure that it is not investing in a property that is overpriced within its market.

Closing Costs

Closing costs are a group of expenses that you’ll incur at the end of your home buying process including loan processing costs, title insurance, and excise tax. These costs usually amount to about 2-5% of the total purchase price of the property, but it is possible to negotiate some of the costs down.

Title Insurance

Title insurance ensures that the seller of the home actually has the right to sell it! Title insurers also search public records to make sure there are no liens on the home, such as unpaid taxes or contracting bills.


The escrow process while buying a home involves a neutral third party overseeing the process from the deal being signed to the property being officially transferred. The home is held “in escrow” to ensure that both parties are meeting their responsibilities during the deal and satisfying all of the conditions in the contracts.

Blog author image

Ailton Santana

Honest and knowledgeable Realtor that works hard and goes the extra mile, translating customer needs into clear information and high standards of service for them to achieve what they want.....

1 comments in this topic

  • Posted by Ann Wilkinson
    I am interested in buying a guelph condo.

Latest Blog Posts

Are prices still going up? Your May 2021 market report.

When you read the market report for May 2021 in KWAR website you will see this billboard:HOME SALES CONTINUES TO BREAK RECORDSIs this right?Let's pay attention to what the numbers are telling us

Read More

The Do's and Don'ts when selling your home

Selling your home doesn’t have to be full of missteps and mistakes.Learn from these common mistakes and avoid problems from the moment you put up that For Sale sign!LET’S START WITH

Read More

Movement Mechanics to Real Life.

Movement Mechanics to Real Life.In life, we tend to do the same things everyday.Get up. ?Grab coffee. ☕Get kids ready. ?Get spouse ready. ?Get in car. Sit in car. ?Sit in traffic. Sit in more

Read More

The Porch Goes BOO!

The Porch Goes BOO!For over ninety years this property located at 2084 Old Lakeshore Road has brought people together at the lake. It has been a venue for good food, (and good drinks) music, and

Read More